General Motors Company · NYSE:GM
General Motors — Corporate Update (November 2008)
13 slides from General Motors's corporate update, Nov 18, 2008
Slide 1: The Case for Federal Support for GM and the U.S. Automotive Industry
The Case for Federal Support for GM and the U.S. Automotive Industry The Case for Federal Support for GM and the U.S. Automotive Industry November 2008 November 2008
Slide 2: Forward Looking Statements
Forward Looking Statements In this presentation and in related comments by our management, our use of the words “expect,” “anticipate,” “estimate,” “goal,” “target,” “believe,” “improve,” “intend,” “potential,” “continue,” “designed,” “opportunity,” “risk,” “may,” “would,” “could,” “should,” “projec
Slide 3: Overview
Overview GM has taken far-reaching actions over the last several years to restructure, be more competitive, and position its U.S. business for future viability and success Dramatic cost reductions Excellent product execution Significant technology advancements However, the credit crisis is overwhelm
Slide 4: GM Has Taken Bold Actions to Achieve Competitiveness
GM Has Taken Bold Actions to Achieve Competitiveness Reduced structural cost by $9 billion from 2005-2007 (down 22%) with plans for further reductions of $5 to $6 billion by 2011 (down ~35%) Rightsized manufacturing capacity: From year-end 2004 to year-end 2007, GM removed 1.3 million units of assem
Slide 5: GM Has Taken Bold Actions to Achieve Competitiveness (continued)
GM Has Taken Bold Actions to Achieve Competitiveness (continued) Commitment to Product Excellence broadly recognized North America Car of the Year: Chevrolet Malibu and Saturn Aura Motor Trend Car of the Year: Cadillac CTS European Car of the Year: Opel Insignia Green Car of the Year (LA Auto Show):
Slide 6: Rapid Decline in U.S. Consumer Confidence Due to Credit Crisis, Leading to Low Industry Vehicle Sales
Rapid Decline in U.S. Consumer Confidence Due to Credit Crisis, Leading to Low Industry Vehicle Sales Falling U.S. home prices, mounting foreclosures and subsequent credit/financial crisis led to dramatic decline in consumer confidence October U.S. auto sales fell to levels not seen in more than 25
Slide 7: Most Difficult Business and Credit Environment in Years
Most Difficult Business and Credit Environment in 70 Years Housing price decline in U.S. and Europe precipitated financial turmoil which has spilled over to the broader global economy, leading to widespread uncertainty and volatility U.S. economic downturn, declining employment, falling real income
Slide 8: U.S. Auto Industry Is Significant Contributor to U.S. Economy
U.S. Auto Industry Is Significant Contributor to U.S. Economy Directly employs nearly 240,000 people Provides healthcare to 2 million Americans and pension benefits to 775,000 retirees and spouses Supports another 5 million jobs at dealers, parts suppliers and service providers Comprises nearly 4% o
Slide 9: Massive Employment Impact from Detroit Collapse
Massive Employment Impact from Detroit 3 Collapse Source: Center for Automotive Research Memorandum: The Impact on the U.S. Economy of a Major Contraction of the Detroit Three Automakers, Nov. 4, 2008 Direct Employment: Jobs at Detroit 3 carmakers Supplier Employment: Jobs at companies that sell com
Slide 10: Chapter 11 Is Not a Good Idea for an Automobile Manufacturer
Chapter 11 Is Not a Good Idea for an Automobile Manufacturer Successful Chapter 11 filing would require both preservation of revenue (especially in a high fixed cost industry like the auto industry) and successful financing while in bankruptcy Filing would precipitate massive and rapid desertion by
Slide 11: GM Taking Significant Actions in 2008 and 2009 to Generate and Preserve Cash Through Downturn
GM Taking Significant Actions in 2008 and 2009 to Generate and Preserve Cash Through Downturn In light of ongoing global credit crisis, GM has planned conservatively and is expecting U.S. industry volumes significantly below trend for several years In July 2008, GM took difficult actions to generate
Slide 12: GM and Industry Need Liquidity Bridge to Cover Expenses Through Downturn
GM and Industry Need Liquidity Bridge to Cover Expenses Through Downturn GM needs federal funding as a bridge for engineering and technology spending, capital spending and operating requirements that cannot be covered in the current depressed industry conditions Engineering and Technology Spending R
Slide 13: GM Is Executing Its Plan to Build a Winning Auto Company for the Long-Term
GM Is Executing Its Plan to Build a Winning Auto Company for the Long-Term GM is building a winning auto company for the long-term Using its global scale and scope to bring products that consumers want to every market GM competes in with industry-leading quality, safety, fuel economy and design, inc